FACILITATING INVESTORS

The Idea Bank is a compilation of selected feedback by the public received through PEMUDAH Website which might be useful for information and reference purposes. The compilation includes complaints, inquiries and suggestions addressed to various Government Agencies which have been appropriately edited for general viewing.

Please also be informed that the information, relevant acts, rules and procedures provided therein may have been reviewed, revised or updated by the respective Government Agencies. You may want to visit the relevant websites for information or submit your inquiries through our Feedback Form.

I am from a Taiwanese consultant company. Recently, there has been a solar company in Taiwan asking about the the estimated price of setting up a solar or crystal puller factory in Selangor or Seri Iskandar Industrial Park and the size of the factory is about 250,000 square meter. The company need this info urgently because now it is making the preliminary stage of evaluation toward the possibility for the company to set up a factory in Malaysia. Hope to hear from you soon.

Reply

Thank you for your email about the interest by a Taiwanese company wishing to invest in solar or crystal puller manufacturing project in Malaysia.

In responding to your enquiry, we would like to attached herewith MIDA’s publication entitled “Cost of Doing Business in Malaysia” for your reference. The publication can be used as guide to estimate the cost for setting up the project in Selangor, Perak or other States of Malaysia. Examples of the costs include:

i)Cost of Industrial Land

Location

Selling price per ft²

Quit rent per annum

Annual
assessment rate (% of property value)

Perak

US$1.51 – 5.13

US$905 per ha.

10

Selangor

US$2.11 – 7.54

US$453 – 6,365 per ha.

8 – 13

ii) Cost of Ready-built Factory

Location

Selling price per ft² of floor area

Rental per ft² per month

Perak

US$29.27 – 34.70

US$0.15 – 0.21

Selangor

US$33.19 – 120.70

US$0.33 – 0.60

iii) Purata Kos Membina Kilang (sekaki persegi)

Lokasi

Sewa bulanan sekaki persegi

Kilang konkrit diperkuat

19.61 – 22.63

Ranka portal keluli di atas konkrit diperkuat

22.63 – 24.14

Kilang yang mempunyai kemudahan bilik bersih

36.21 – 39.23

iv) Cost for Utilities

Please refer to the publication as the cost for utilities (e.g. electricity, water, fuel, and scheduled waste treatment) for the project will depend on the usage and requirement.

We would like to suggest the Taiwanese company to contact our office in Taipei to discuss about the project further. The contact details as follows:

Am a businessman related to shipping & trading . I was asked by overseas counterpart whether the goverment has plans to covert Hutang Melintang , Perak jetty area into a big mineral hub. Some 10,000 acs. This is as per AFTA master plan presumed. I wud very much appreciate if you could throw some light here.I need to adv my business contacts whether there is such plan.

Reply

I have contacted InvestPerak and MIDA Perak regarding the matter and the information seems to be incorrect. There is no State Govt. project of such scale in Hutan Melintang.

So far there is no paper or proposal being brought up to PIMC –Perak Investment Management Center (InvestPerak) or in State Govt. Exco Meeting of setting up such Hub for minerals especially in Hutan Melintang area.

Even to get 10,000 acres in Hutan Melintang is not an easy task as most of Hutan Melintang areas belonging to private owners. The State Govt. does not have such lands in Hutan Melintang.

There is also neither such plan in Perak’s RMKe- 9 nor in NCER.

Most of Hutan Melintang’s jetty is private owned and cater for fish landings and not for catering for huge minerals (granites, iron ore or bulk) handling.

There is one big giant in mineral business that is Lloist Group looking for a private jetty to handle their 4 millions of tons of limestone to be exported as Penang Port is quite expensive and unable to cater for the Post Panamax Class Vessel due to swallow channel. A part from that, the project to deepen North Channel has been deferred by the Federal Govt.

The above ACT needs to be amemded to EXCLUDE commercial properties. Reason being that the voting right of unit owners (even if I own 80 out of 100 units of shoplots in a commercial complex) is ONLY 1!!!? The small unit owners will be the ones managing and running the commercial complex although I own 80/100 units!! This has chased away Foreign Investors who want to buy properties in Msia (enbloc or in many units) as they can’t control their investments! Many problems also arisen bcos of this.

Reply

For information, the Act is quite new and was introduced in April 2007. This fall under the jurisdiction of the State Authority and the Local Authority. But in order to make sure the implementation and effectiveness of the Act, the Federal Government since the middle of 2008 has recruited COB(Commissioner of Building) officer to be located in the Local Authority area.

Nevertheless, REHDA is aware of the JMB lacking the knowledge of strata management, we have plan to educate them in various ways for example:

A regular visit from time to time from the Local Authority (COB) Commissioner of Building to the development area to explain the role and responsibilities of the JMB in Strata Management.

Circulating a brochure relating to the function and roles of Management.

Assisting them through COB officers posted in each Local Authority .

JMB is just the interim Body managing the building prior to the formation of the (MC) Management Corporation in Strata Title Act 1985. According to the Act 663(Building and Common Property Act(2007), the JMB will be dissolved automatically after 3 months of the first meeting of MC. During the formation of MC and future meeting,all the decision of the voting/polling system will be decided according to the ‘share value’ of the owner. This share value will be determined by Licensed Surveyor of the Developer based on the square feet own by the purchaser.The bigger space they own, the bigger share value they will have.

However, the prerequisite to convene the first meeting of MC is that, there must be at least 25% of the owner must own a strata title first. To achieve this, the developer must quickly submitted the strata title ‘complete’ application to the State Land and Mines Office a.s.a.p.

I have relatives from overseas wanting to buy residential land from me but the residential land is only worth 30,000.00 each. However, the new guidelines said that Foreginers cannot buy any land that is less than RM250,000.00 per unit. So is it possible that FIC can still approve the sale

Reply

Under the current EPU,JPM’s Guideline on acquisition of properties, foreigners can only buy residential properties valued at RM250,000 and above (this minimum threshold will be revised/increased to RM500,000 by early next year (2010).

With regards to your intention of giving each of your relatives (being the shareholders of your development company) a plot of residential land valued at RM30,000, this is against the Guideline. However, as you explained, the ‘repayment scheme’ was to compliment your shareholders/relatives earlier commitment in your development company, I would advice you to discuss the matter with the relevant authority in Ipoh since Perak Corporation is one of the shareholder in your development company.

As I had mentioned to you, I had already replied to your inquiries yesterday but it failed to reach you.

Thank you.
Dear Mr. Toong,

Under the current Guideline on acquisition of properties, foreigners may acquire residential properties, in Malaysia, valued at more than RM250,000 per unit (vacant land OR vacant land with building). This minimum threshold for residential land/properties however will be increased to more than RM500,000 next year (2010).

Acquisition of residential unit is no longer under the purview of EPU,JPM, thus does not require the approval of EPU,JPM.

If your relatives are still keen on buying those residential lands, you may ask them to build and construct residential units on the said lands, which is to be valued (vacant land with building erected on the land) and certified by the contractor/architect, of more than RM250,000 per unit.

How to apply for a permanent resident status in Malaysia. My business partner is an indian and has been in Malaysia for last 3 years. He also has MM2H and would like to be a permernant residence of Malaysia. He has currently invested about RM15mil in Malaysia in properties and other business.

Reply

The holder of MM2H program was not eligible to apply Entry Permit. (PR).

Advice on how to apply Permanent Resident (PR) for inventor who brings in investment of more than US2 million. Which authority to refer to.

Reply

The amount of investment is not one of the criteria for the application of Permanent Resident (PR).

Before you apply to be a permanent resident of Malaysia, you must first obtain an Entry Permit seeking to remain in Mlaysia after expiry of your pass. The issue of an Entry Permit is not a right but merely an eligibility. Only certain categories of persons are eligible to obtain an Entry Permit. The categories of person eligible to apply for an Entry Permit as set out in the Immigration (Prohibited of Entry) Order 1963 are as follows:

person in possession of specialist or professional qualification

persons in possession of a certificate from the Minister of Home Affairs certifying that their admission would be in the economic interest of Malaysia

To apply for Entry Permit, the following supporting documents must be submitted to the nearest Immigration Department of Malaysia for approval:

Form IMM. 4 (1 copy)

Photocopy of international passport OR legal travel documents

2 copies of photograph measuring 3.5 cm X 5.0 cm

Photograph of local sponsor measuring 3.5 cm X 5.0 cm

Other supporting documents

Part II of the Form IMM. 4 is the declaration part which must be made by a person resident in Malaysia.

The form can be obtained from the counter of Immigration Department of Malaysia at the cost of RM1.00 each and the fee for Entry Permit is RM120.00 per Entry Permit.

To become a permanent resident of Malaysia, you must reside in Malaysia for a continous period not less than 5 years under a valid Entry Permit preceding the date of your application for a PR status.

To apply for the permanent resident status, you have to bring along your travel document or passport for the pass years to the Visa, Permit and Pass Division of the Immigration Department of Malaysia.

The immigration officer will inform you of your eligibility to apply for the permanent resident status and the supporting documents you have to submit with your application, where applicable.

Issued to foreign nationals who require a visa to enter Malaysia mainly for a social visit. Normally valid for a single entry and for a period of three (3) months from the date of issue.

MULTIPLE ENTRY VISA

Issued to foreign nationals who require a visa to enter Malaysia mainly for business or government-to-government matters. Normally valid for a period within three (3) months to twelve (12) months from the date of issue.
Citizen of India and People’s Republic of China who wish to enter Malaysia for the purpose of Social Visit are eligible to apply for Multiple Entry Visa.
The validity of the Multiple Entry Visa is one (1) year. Each entry is 30 days only and the extension of stay is not allowed.
Conditions for Multiple Entry Visa are:

Applicant must show proof of sufficient fund for staying in Malaysia

Posses valid and confirmed return ticket

Group tour is not eligible to apply for Multiple Entry Visa.
The Multiple Entry Visa is RM50.00 for Indian Citizens and RM30.00 for People’s Republic of China’s citizens.

TRANSIT VISA

Issued to foreign nationals who require a visa to enter Malaysia on transit to other countries. Foreign nationals on transit without leaving the airport precincts and who continue their journey to the next destination with the same flight do not require a transit visa.

If you need further information on resident visa or the application of visa, please log on directly to The Immigration Department of Malaysia official website : www.imi.gov.my or Tel. no. 603-8880100 or Fax no. 603-88801200.

On Question no. 2, there are no specific sources of financing for foreign investment in hotel business provided by the government authorities. Investors are advise to find their own financing either from the local or foreign commercial or investment financial institutions.

If you need further information on investment or tax incentives in Malaysia, you could log on directly to Malaysia Industrial Development Authority website: www.mida.gov.my or Tel no. 603-22673633 or Fax no. 603-22747970.

From Ms Lai Shevren dated 20 Jan
Please be informed that MM2H programme is a long-stay programme which offers incentives to facilitate participants’ stay in Malaysia, one of which is the provision of 10-year multiple-entry social visit pass, renewable.

Please visit our website http://www.mm2h.gov.my for comprehensive information on the programme, terms and conditions, incentives as well as application procedure. Nevertheless, we are taking the liberty of summarising the MM2H programme for your reference:

1. CRITERIA

These criteria are to be observed only after receiving Letter of Conditional Approval (refer to “stages in application”, below)

1.1

An important criterion is financial. Applicants need to show their financial capability to support themselves in Malaysia whilst on the programme, without having to work or do business here. Documentation related to this would expedite the approval process.

Applicants aged below 50 years are required to place a Fixed Deposit (FD) of RM300, 000.00 (approximately USD86,000.00) in any bank or financial institution . Those who are 50 and above may choose to either deposit RM150, 000.00 in fixed deposit (FD) account or show proof of offshore income of RM10, 000.00 per month (applicable to government pension payments ). They may, with prior approval from the Ministry of Tourism, withdraw up to RM240, 000.00 (below 50 years) or RM90, 000.00 (50 years and above) from the FD account for specific purposes, such as house purchase, medical expenses or children’s education, after one year on the programme. It is mandatory to maintain RM60, 000.00 as fixed deposit in the bank from the second year onwards. Besides fulfilling the basic financial criteria of FD, applicants should provide proof of their financial standing, as mentioned in the introduction. The financial requirement is for the main applicant only.

1.2

Medical report from any private hospital or registered clinic is to be submitted.

1.3

Applicants will be required to purchase medical insurance policy. International insurance policies which are recognised in Malaysia are acceptable.

2. INCENTIVES

Incentives include accordance of renewable multiple-entry social visit pass for 10 years, tax-exempt import of one personal vehicle or tax-free purchase of locally-assembled car (please check website for conditions), purchase of residential properties priced above RM250, 000.00 each (RM350,000 in certain parts of Sarawak), tax- exempt income from abroad and permission to bring in a domestic helper.
.3. STAGES IN MM2H APPLICATION

3.1

MM2H applications may submitted through licensed MM2H agents or directly to us in MM2H Centre. The list of licensed companies are listed under “Licensing” page of our website. Applicants should be happy with the services to be provided by any appointed agent and fees should be mutually agreed upon. A simple contract would be useful, in the event that an applicant wishes to seek redress against non-performance of an appointed company.

Pre-submission/submission : application for social visit pass ( 4 weeks)
Download the Social Visit Pass Application form, FORM IM 12 , from our website, under “‘How to Apply” page and observe the guidelines stated in this section. Please comply with all the guidelines listed for new applications, to avoid unnecessary processing delay. Copies of marriage, birth certificates, financial and other endorsed documents need to be submitted together with the application. Please note that only registered marriages are eligible for MM2H application. One partner is the main applicant whereas the spouse and unmarried children below the age of 18 may be listed as dependants. Unmarried couples will need to submit two separate applications and fulfill the criteria separately.

Approximately 6 weeks from submission, your agent will be notified of the status of your application by our Immigration authorities. If approved, they will be receiving your Letter of Conditional Approval. Applicants may also check the status of their application on-line, through our website.

3.2.

Letter of Conditional Approval (maximum validity 6 months )
Applicants are required to be in Malaysia within six months of the Letter of Conditional Approval to fulfill the criteria of:

opening fixed deposit account in any Malaysian banking institution

undertaking medical test in any private hospital or registered clinic

purchasing medical insurance policy.

Documents related to the above are to be submitted to the Immigration Department for final approval of MM2H status (see (3.3) below).

3.3

Multiple-entry Social Visit Pass
The Immigration Department will accord the MM2H visa once your final documents are approved, and you will be issued the renewable multiple-entry social visit pass for ten years (or less, depending on the validity of your passport). A visa fee of RM90.00 per year will be collected. For some nationalities, a Journey Performed (JP) visa fee of RM500.00 may need to be paid before the MM2H endorsement is given.

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